AMR Reaches Pact With Air Canada,
Removing Hurdle to Canadian Air Deal

By

Christopher J. Chipello and

Joel A. Baglole Staff Reporters of The Wall Street Journal

Updated Dec. 9, 1999 12:01 a.m. ET

MONTREAL -- Air Canada and AMR Corp. said they reached an agreement that removes a crucial hurdle to Air Canada's acquisition of struggling rival Canadian Airlines , while allowing AMR's American Airlines unit to continue code-sharing arrangements with Canadian Airlines.

Air Canada, the country's biggest carrier, also disclosed that more than 50% of Canadian Airlines' common shares have been tendered to Air Canada's takeover offer of...